Question: 1. Why would managers use the allowance method for recording uncollectible accounts instead of the direct charge-off method? 2. Should the sales department be given

1. Why would managers use the allowance method for recording uncollectible accounts instead of the direct charge-off method?
2. Should the sales department be given final authority for approving credit applications? Why?
3. Why is an account receivable that was written off as uncollectible reinstated if it is later collected?
4. Why does management separate the authority to charge off uncollectible accounts from the authority to receive customers' cash?

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